Tag Archives: Malaysia

Pay emerging markets to help stop climate change

Among developed countries investors, there are various interpretations of the strength of the commitment to environmental, social and governance (ESG) factors in emerging markets, ranging from the cynical to the idealistic.

The cynical view would be that there can be no “real” ESG in emerging markets because too often they are plagued by corruption, therefore investors cannot trust what companies in these countries report.

The idealistic view, on the other hand, would see every little step towards introducing ESG as a wonderful sign that these countries are finally deciding to adopt the same values as Western democracies.

While both extremes are wrong, sadly even the moderate take misses the main difference between emerging markets and developed ones: the effect of development itself on ESG — and in particular on the “E”.

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Credit Growth ‘Excessive’ in Many Emerging Markets

Emerging markets have quickly caught the developed nations’ disease and now many of them suffer from too rapid credit growth, which threatens their financial stability, analysts at Societe Generale said in a report.

In several countries, credit growth has exceeded 15 percent per year over the past four years, outpacing gross domestic product growth.

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